Outstanding news if you intend to buy a property in Tarn this year! Whether you intend to buy a gorgeous 4-bedroom home with a terrace and a swimming pool in Albi, or you've got your heart set on a 2-bedroom apartment with an open-plan kitchen in Saint-Juéry, you could transfer your money from the UK to France at a superior exchange rate this year.
Why? Well, because the pound looks set to fly higher versus the euro, so lifting your total when you exchange currencies, and cutting your costs to buy the Tarn property you've been dreaming of. Here's why sterling may rise:
Pound could strengthen, as Bank of England set to lift UK interest rates
First of all, the pound may rise, making buying a beautiful Tarn property more affordable for you, because the Bank of England looks set to lift UK interest rates. In particular, the Old Lady of Threadneedle Street, as the UK's central bank is often called, may lift borrowing costs above their current low of 0.25%, as the UK's GDP rose by +0.4% in Q3, above forecasts.
In turn, this tells us that the UK economy is fighting fit, and ready to withstand tighter credit conditions. So, as the BoE hikes, sterling may rise, thus lifting your currency total to buy your very own Tarn property!
Euro may weaken, as ECB set to extend vast monetary stimulus into 2018
In addition, sterling could also jump versus the Eurozone's common currency, cutting your costs to buy your fantastic property in Tarn, as the European Central Bank (ECB) looks set to extend its huge monetary stimulus into next year.
In particular, it's thought that the ECB will continue to inject a mighty €45 billion into the Eurozone's financial system each month, to support economic growth and lift inflation. In turn, as the ECB injects money, this lifts the supply of euros in Europe, dragging down the euro's value. As a result, buying Tarn property is more affordable for you!
Receive more euros in your French bank account, as exchange rate rises
With all this in mind, just think what you could do with the extra euros, to buy the Tarn property you've been dreaming of! For example, since late August, the pound to euro interbank exchange rate has risen +4 cents, from 1.08 to 1.12.
If you were to transfer £250,000 to France to buy a Tarn property, you'd hence receive +€10,000 extra than if you'd made the same transfer 3 months ago. With these extra €10,000, you could pay off the legal costs and administrative fees of buying your beautiful Tarn property, or really celebrate buying your new Tarn home in style!
Given all this, it’s looking like the ideal time to buy Tarn property, as the rising exchange rate could cut your costs!
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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email firstname.lastname@example.org.